According to a new report from a German publication, Auto Motor und Sport, Mercedes will not use Tesla’s drivetrain for the next generation of electric B-Class. Mercedes will bring more development in-house to try to achieve a range of 500 km (311 miles). It’s not clear when the next generation is due.

Tesla Motors has a long-standing partnership with the German automaker. In 2009, Daimler, the company behind the Mercedes brand, acquired a ~10% stake in Tesla. Tesla started supplying electric drivetrains to Daimler for the Smart EV and then later on developed a new electric motor and battery pack for Mercedes’ B-Class which started deliveries late last year.  expand full story